Fine Wine Investments

Wine has proved to be a safe haven for investors for many decades, possibly because of its chattel status (Exemption from Capital Gains Tax).

Is wine a good investment? Investing in vintage wine funds, particularly classified Bordeaux and fine Super Tuscan wines, has outperformed all other traditional investment products and, as yet, never shown losses.

But, however, it is a narrow market with only 40 to 50 of the half million or so producers to choose from each year, growth is often maintained at around 12-15% per annum but has performed much better, especially over the past few years.

The main factors which drive profits are:

• House Name (brand)
• Vintage (perception)
• Availability 
• Points (Parker)

As in all things, when purchasing fine wines for investment, advice should be sought from experts

According to HMRC (http://www.hmrc.gov.uk/helpsheets/hs293.pdf) part 4:

'A wasting asset is an asset with a predictable life of 50 years or less. Unless you have, or could have, claimed capital allowances for it, any gain on the disposal of a chattel which is a wasting asset is exempt from Capital Gains Tax'. 

Fine wine is regarded as a wasting asset (food product) with a predictable life of 50 years or less. This is especially applicable if private clients choose to own the asset for less than the 50 year predictable life of the wine.

Choosing the best wine investment can be difficult, so careful consideration is crucial. Your questions on the best wine investments will be answered by our industry experts, free of charge. 

• To help you through the multitude of choices, enter your details below and let the Compare The Financial Markets experts find the best wine investment for you.